$1 Million In Revenue Each Day?

Posted: April 30, 2010 in Entertainment, Social Network, Uncategorized, Websites
Tags: , ,

Getting users addicted to your games is very profitable, according to the Business Insider’s Chart of the Day by Nicholas Carlson and Kamelia Angelova. Zynga, the social gamesmaker behind Farmville, has a revenue run-rate around $600 million, a source close to the company tells us. Another source confirms that Zynga is doing well over $1 million in revenue a day.Check out the chart:

Zynga makes its money getting users addicted to games such as Farmville and Fishville, and then selling them “virtual goods” that make those games easier. The games are also made easier when a player can get another Facebook friend to sign up and build his or her own farm. This introduces an element of social pressure which makes the games more addictive and more viral.

The article said that “the secret to Farmville’s popularity is neither game play nor aesthetics. Farmville is popular because in entangles users in a web of social obligations. When users log into Facebook, they are reminded that their neighbors have sent them gifts, posted bonuses on their walls, and helped with each others’ farms. In turn, they are obligated to return the courtesies.”

We learned all about social capital during our social dynamics class. “Capital” is money that is over and above cash flow. But you also have capital on a social level that you spend with other people. For example, a neighbor runs out of sugar, and you give her a cup. When you’re car breaks down, you can ask her for a ride. Since you gave her sugar, she feels obligated to give you a ride. It’s reciprocity, and you gained social capital when you gave her the sugar. There is also a connection and a tie, and a relationship is formed.  Humans have a compulsion to reciprocate. It’s what makes communities group together, which is the reason why sites like Farmville is so successful. It’s a brilliant strategy.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s